Home Affairs Minister Tony Burke has announced a range of migration reforms aimed at reducing Net Overseas Migration (NOM) while continuing to support Australia’s workforce and economic needs.
Speaking at the National Press Club on 17 September 2026, the Minister emphasised that migration remains essential for key industries such as healthcare, aged care, education and construction. However, the Government is seeking to tighten certain visa pathways and reduce opportunities for people to remain in Australia beyond the original intent of their visa.
Here are the key changes and what they could mean for employers, students and visa applicants.
Why is the Government Making These Changes?
Australia’s latest migration figures show NOM has fallen to 292,100 for the year ending March 2026 and the Government wants to reduce this further to 245,000 in 2026-27 and 225,000 from 2027-28.
According to the Minister, the reforms are designed to address concerns around housing pressures, visa misuse and long-term population planning, while ensuring Australia can still attract workers needed in critical sectors.
Student and Graduate Visa Changes
One of the biggest announcements affects student and graduate visa holders.
Under the proposed changes:
- Most student and graduate visa holders will no longer be able to include family members as secondary applicants.
- Existing visa holders will not be affected.
- Exemptions will remain for PhD students and students from Pacific and ASEAN countries.
The Government also intends to tighten rules around course transfers. Students progressing to a higher qualification, such as from a bachelor’s degree to a master’s degree, will still be able to apply for a new visa. However, moving to a lower-tier education provider or course will generally be restricted and will require a new visa application.
Changes for Working Holiday Makers
The Working Holiday Maker (subclass 417 and 462) program will be significantly restricted.
A ballot system will be introduced for second and third-year visas, with annual caps reduced to:
- 45,000 (from 57,000) second-year visas
- 5,000 (from 31,000) third-year visas
Applicants will still need to meet the existing regional work requirements.
The Government is also slowing processing for some UK applicants following significant growth in working holiday numbers since the Australia-UK Free Trade Agreement.
Visitor Visas: No Further Stay Conditions
A major change will apply to future visitor visa holders.
New visitor visas will generally include a “No Further Stay” condition (Condition 8503), preventing most applicants from applying for another visa while remaining in Australia.
This means many visitors who wish to pursue another visa pathway will need to leave Australia and apply from offshore.
Importantly, existing visitor visa holders will not be affected by this change.
Skilled Migration to Focus on Priority Occupations
For employers, there is some positive news.
The Government plans to introduce a revised Points Test that places greater value on trade qualifications, particularly in sectors linked to housing and infrastructure.
The recently announced Ministerial Direction 119 for Subclass 482 priority visa processing will also be expanded to include:
- Construction
- Teaching
- Agriculture
- Resources and fisheries
- Healthcare
These changes reflect the Government’s intention to continue attracting workers to industries experiencing significant labour shortages.
Increased Compliance Measures
The Government also announced stronger enforcement measures, including:
- Additional sanctions for migration agents who assist with unmeritorious applications.
- Increased action against visa overstayers.
- Recruitment of 100 additional compliance officers.
- An additional 250 detention beds to support compliance activities.
The Minister stated that the focus is on encouraging voluntary departures and improving compliance rather than large-scale enforcement operations.
What Does This Mean for Employers and Visa Applicants?
The overall message is clear: Australia is seeking to reduce migration numbers while preserving pathways for workers who can address genuine skills shortages.
Employers in priority sectors may benefit from improved processing and greater recognition of trade qualifications. However, students, visitors and working holiday makers are likely to face stricter requirements and fewer opportunities to transition between visa categories.
As further details emerge, visa holders and employers should carefully review their options and seek advice to understand how these changes may affect future migration plans.
If you would like advice on how these changes may affect your business, workforce planning, or visa options, please contact our migration law team.
